By a 65-33 vote on Dec. 18, the U.S. Senate passed a combined $1.1-trillion spending bill and a $680-billion tax extenders package that funds the government through September 2016 and lifts the 40-year-old ban on U.S. crude oil exports.

The combined bill—which also extends or makes permanent scores of tax incentives for corporations and individuals—now goes to President Barack Obama’s desk for signature.

On Dec. 17, the House of Representatives voted separately to approve the tax extenders package, and voted earlier Dec. 18 on the spending bill. Enactment of the spending and tax extender bills effectively brings to an end legislative business for the year.

Lifting the crude oil exports ban was a major priority for Republicans. The historic bipartisan agreement was reached in exchange for several Democratic concessions, including a five-year extension to wind and solar tax breaks.

The American Petroleum Institute (API), which represents a majority of upstream operators, lauded passage of the bills.

“Today, the American people can cheer the House and now the Senate for putting the nation’s energy needs ahead of politics,” API President and CEO Jack Gerard said. “This is a historic moment in our energy renaissance. Lifting this ban will help put downward pressure on gas prices, create jobs, grow our economy and lower our trade deficit. We now urge the president to follow Congress’ lead and sign this legislation into law.

“With the administration’s push to allow Iran to export its oil to the global market, it’s time for U.S. producers to have the same opportunity. Our allies around the world are eager to reduce their reliance on energy from less friendly nations,” he said.

U.S. Northeast lawmakers also secured a new tax break designed to help independent petroleum refiners in the region offset Jones Act shipping costs. Independent refiners (defined as refiners with no upstream production operations) will be able to count 75% of the cost of transporting crude oil toward an existing manufacturing tax deduction.

The goal is to help refiners that serve the Northeast remain competitive with those overseas and minimize the potential for higher energy costs in the region caused by crude oil exports. The bill also allows President Obama to freeze exports for up to a year under certain circumstances, such as a supply shortage or a significant increase in U.S. oil prices vs. the global market.

However, a group of Northeast refiners—collectively named Consumers and Refiners United for Domestic Energy (CRUDE) Coalition—have expressed disappointment that the crude export ban will be lifted, arguing that while newfound, abundant supplies of U.S. crude oil have lessened the impact of OPEC-sourced oil, the country is “far from achieving energy independence or security.”

“Advocates of lifting the ban ignore the reality that the U.S. still imports 7 million barrels of oil per day to meet domestic demand, so for every barrel that is exported, a barrel will have to be imported, potentially from an unstable source,” according to the group, which consists of Alon USA, Monroe Energy, PBF Energy and Philadelphia Energy Solutions.

“There are numerous policy and regulatory constraints that put U.S. refiners at a distinct disadvantage in the marketplace and Congress fails to address those issues in its rush to overturn current law,” the group noted.

Obama has previously opposed lifting the ban but will likely sign the legislation.

In October, the Office of Management and Budget (OMB) signaled he would veto lifting the ban on crude exports because exports were “not needed at this time.” Congress should have instead focused on supporting a low-carbon economy.

White House Press Secretary Josh Earnest said on Dec. 16 that “frankly, we still don't support it.”

Earnest said the administration is not overly concerned with lifting the oil export ban because the U.S. already exports 4.3 million barrels a day (Mbbl/d) of refined petroleum products.

“The fact is there was already substantial petroleum products, both refined and unrefined, that were already being exported,” he said.

Obama supports the legislation because he is now satisfied with pinning down wind industry tax credits and securing a five-year tax credit for the solar industry.

Bryan Sims can be reached at bsims@hartenergy.com. Darren Barbee contributed to this report.